The Need for Effective Battery Recycling in India
India is witnessing rapid electrification, especially with the adoption of electric vehicles (EVs), which is expected to drive demand for lithium batteries from 4 GWh in 2023 to nearly 139 GWh by 2035. The renewable energy sector's expansion further accelerates the demand for battery energy storage systems, crucial for achieving India's Net Zero goal by 2070.
Environmental and Economic Risks
- Improper disposal of lithium batteries poses significant environmental risks, including toxic leakage into soil and water.
- In 2022, lithium batteries contributed to 7,00,000 metric tonnes of the 1.6 million metric tonnes of e-waste in India.
- If unchecked, poor recycling practices could cost India over $1 billion in foreign exchange losses by 2030.
Battery Waste Management Rules (BWMR) 2022
The BWMR aims to ensure sustainable battery management and recycling through Extended Producer Responsibility (EPR), compelling producers to fund recycling efforts.
Challenges in the Current EPR Framework
- The current EPR floor price is deemed too low, making robust recycling economically unviable for legitimate recyclers.
- This low pricing encourages informal and fraudulent recycling practices, undermining India's circular economy goals.
- Global metal price declines have not translated into consumer savings, suggesting manufacturers could absorb higher recycling costs.
Recommendations for a Fair EPR Floor Price
- Adopt a globally comparable EPR floor price reflecting actual recycling costs, drawing from international best practices.
- Strengthen enforcement mechanisms, including audits, digital tracking of EPR certificates, and penalties for non-compliance.
- Integrate informal recyclers into the formal sector to enhance capacity and reduce hazardous practices.
By recalibrating EPR pricing and enhancing regulatory frameworks, India can turn battery waste management into an opportunity for green growth within a circular economy.